While Bahrain has a more diversified economy than many of its Gulf neighbours, at least in real economic terms, in fiscal terms more than 80% of state revenue still comes from oil. And with Bahrain’s breakeven point one of the highest in the region, estimated at more than $100 per barrel, far above the current market price, state revenue is down markedly, impacting on government spending and future plans.
Even so, there are positive signs for the economy, with a new $10bn fiscal aid package in place, as well as a fiscal programme announced in late 2018 that aims to balance spending and decrease the public debt.
